It is simply astonishing how the world of cryptocurrencies is being affected by the advancements of the AI technology. Expert artificial intelligence systems are making every single aspect of trading automatization incredibly efficient and more productive with each passing month. We are seeing some outstanding developments in this area!
If you are interested in running an AI crypto trading bot and using the power of machine learning to your advantage, you are living in the right time. We have a plenty of interesting things to discuss. Let’s start with the recent deployment of the WunderTrading’s newest product — AI-assisted statistical arbitrage bot.
The language of this article will closely resemble ramblings of a sci-fi fan, but the reality is turning into fantasy right before our eyes. Let’s talk about AI excitedly and discuss where the continuous development of this technology will lead us.
How WunderTrading uses AI and machine learning to create the future
The idea of neural networks and machine learning is not new. It wasn’t novel over 50 years ago when academics toyed with the idea of creating a human-like machine capable of creative thought. However, the interest from the public and business had not sparked until recently. In 2023, OpenAI’s ChatGPT became the hottest new thing with hundreds of tech startups trying to reach the same level of engagement and funding.
It was an opportune moment for many companies to try and implement a new risky thing. WunderTrading started experimenting with machine learning long before it was cool among tech geeks. The latest introduction of a new statistical arbitrage system powered by artificial intelligence is a result of several months of research and development followed by a series of rigorous tests that showed the proficiency of the robot in managing complex portfolios.
When trying to reshape the game and create a completely novel product, it is important to boldly experiment and roll out exciting features even if they feel underbaked. Thankfully, the AI-assisted statistical arbitrage turned out great and changed the way many WunderTrading’s clients look at crypto investments as a whole. Instead of focusing on a single asset, the new bot can trade a variety of positions and adjust the composition of the portfolio according to the conditions in the market.
How does this product change the future of crypto trading?
- It shows that AI in finance is not just an idea. It is a working concept that deserves more research and development. Artificial intelligence systems can outperform human managers making it possible for all investors to build well-maintained crypto portfolios.
- The product allows users to get comfortable with AI. Some people simply do not trust expert artificial intelligence systems and cannot accept the fact that it can beat the best of us at our most favorite games. However, it is necessary to start using these tools now, in their infancy, to be able to keep up with the industry.
- The AI-assisted statistical arbitrage bot shows that machine learning is capable of creating complex systems. One of the fears of the AI community is that these robots cannot handle sophisticated problems and find elegant solutions, but they can! It is just another piece of evidence that robots will make our lives easier.
Machine learning trading and classic bots
The community of crypto traders is familiar with many standard bots that became trivial over years. For example, it is a common advice from Bitcoin holders to use DCA bots for purchasing coins slowly while reducing the average price of assets. Many retail traders cannot imagine trading many altcoins without using commonly used algorithmic trading bots like GRID or arbitrage.
These good old tools are used by over 80% of all retail traders in the cryptocurrency market. Interestingly enough, we are maybe seeing how these tools are disappearing into obscurity under the pressure from new AI-powered alternatives that use the same concepts but better.
For example, GRID bots use DCA methods to determine how to place consecutive orders after creating the initial market position. These bots follow a set of instructions and do not “think” for themselves. If the algorithm has an error, they will still follow it to the letter.
Contemporary GRID bots have some elements of AI like the ability to identify a better price for an asset or working within certain support and resistance levels. Many such tools do not need any user inputs aside from initial bumps. It may change even more in the nearest future with more developers rolling out AI-powered addons to their GRID products.
Fully autonomous: it’s alive!
AI crypto trading bots are not science fiction or something that belongs to big government conspiracy theories. These are real tools that are available to regular retail traders at a fraction of a price that investors had to pay for basic robots just a decade ago. The last step is the one between a bot that follows and algorithm and a bot that can write one.
At the moment, several companies, including WunderTrading, are working on new products that will completely change the way we interact with the crypto or any other financial market. Robots that can make independent financial decisions based on historical market data, technical analysis principles, fundamental analysis, and other sources of information fed into a powerful machine learning algorithm. These bots will make it impossible for humans and lesser robots to compete.
One of the reasons why we strongly advise everyone to focus their attention on learning how to use these new AI tools is because their improvement and continuous development are inevitable. We are speeding into a new exciting world where one AI system desperately tries to outsmart another one. People who cannot keep up right now will be left way too far behind to even start catching up.
AI elements are already present in many DCA, GRID, and arbitrage bots. WunderTrading is improving their AI-powered statistical arbitrage system every single week. It seems that nothing can stop this progress!
